(www.datastream.net). This action continues a trend of consolidation in the software market following Rockwell Automation’s (www.rockwellautomation.com) acquisition of Datasweep (www.datasweep.com) last November.
Under the terms of the agreement, Infor, based in Alpharetta, Ga., has agreed to pay $10.26 per share in cash to stockholders of Datastream, which has headquarters in Greenville, S.C. The plan has received unanimous approval from the Datastream board of directors and the board of directors of the Infor subsidiary which is a party to the acquisition agreement. The transaction is subject to certain closing conditions, including Datastream stockholder approval. Infor has commitment letters for equity and senior debt financing necessary to fund the purchase price of the acquisition. The parties will work to close this transaction as soon as reasonably possible, but it is expected to be completed in the second quarter of 2006.
Larry Blackwell, Datastream’s chief executive officer, remarked, “By joining with Infor, our employees will have the opportunity to work with one of the leading software providers focused on world-class enterprise applications. Our customers will benefit from a combined entity that will continue to support and improve Datastream’s industry-leading products. After a thorough review, Datastream’s board of directors has concluded that this transaction maximizes value for our stockholders.”
Addressing key needs
Infor delivers integrated ERP and supply chain solutions designed for manufacturers and distributors. The company notes that given the asset-intensive nature of its customer base and target markets, Datastream’s asset performance management solutions will address a key business need.
“Infor is changing what customers expect from an enterprise software provider by assembling and integrating best-of-breed solutions and professionals with deep industry knowledge that is unrivaled in the industry,” said Jim Schaper, Infor’s chairman and chief executive officer. “We are filling a void in the market for customers that want one source for all of their industry-specific enterprise applications. Our explosive new customer growth is proof that our model is working.”